Nvidia Stock Forecast as OpenAI Delays IPO Amid AI Safety Jitters

Nvidia stock slipped in the extended hours on Monday as jitters about the safety of the advancing AI models rose. It fell to $215, down substantially from this month’s high of $234, and technicals suggest that it may drop further before bouncing back.

OpenAI has Delayed its IPO

Sam Altman, the chief executive of OpenAI, ruled out taking the company public this year, citing the elevated safety concerns. As a result, companies associated with the company slipped, with Masayoshi Son’s Softbank falling by over 10% in Japan.

Altman noted concerns about the rapid development of AI models, which are becoming more advanced at an alarming rate. However, the delay is also due to recent disclosures showing that its revenue has remained under pressure over the past few quarters.

Nvidia is a big backer of OpenAI. It invested $30 billion in the company at a $850 billion valuation. Most recently, the company has said that it will back OpenAI’s large data center project in Ohio.

AI safety concerns grew after an Anthropic researcher resigned last week, noting that the current growth trajectory risked contributing to human extinction. After his widely-read post, Anthropic confirmed that malicious users were using its platform to build biological weapons. Yemen’s Houthis have also been using the platform.

In a long post on Saturday, Dario Amodei, the CEO, urged fellow leaders in the AI industry to slow the growth of AI models. Elon Musk, who runs a large AI business and Sam Altman agreed.

At the same time, Barack Obama urged Democrats to make AI a priority in their midterm campaigns. This comes as many states have started to slam the brakes on AI data center buildup.

Implications for Nvidia

These developments are important for Nvidia, a company that has become the biggest beneficiary of the artificial intelligence industry. It is the largest seller of chips, enabling developers to train AI models. At the same time, it has become a big investor in many companies in the AI industry like Marvell Technologies, Lumentum, IREN, and CoreWeave.

As a result, a slowdown in the industry would have a big impact on its business. However, some analysts question these concerns and whether they will lead to a slowdown. One concern is that AI has become a highly competitive industry, with Chinese companies like Z.ai, Moonshot, and DeepSeek experiencing strong revenue growth. As such, this means that American companies will continue building to deal with this competition.

In a statement, David Sacks, who is close to the Trump administration, also questioned why Amodei, Musk, and Altman were calling on the government to slow AI model development. He argues that nothing was stopping their companies from slowing down without government intervention.

Therefore, despite the “noise”, the AI industry will likely continue to grow in the foreseeable future. This, in turn, will benefit Nvidia, whose revenue is expected to continue growing. Analysts see the company’s revenue soaring to over $700 billion next year.

Nvidia Stock Price Technical Analysis

The daily chart suggests that Nvidia’s shares will remain under pressure in the coming days. That’s because it has formed a rising wedge pattern, characterized by two converging trendlines. The stock has now slipped below the lower side of the ascending wedge pattern.

It has also dropped below the 50-day moving average and the Major S/R pivot point of the Murrey Math Lines tool. Therefore, the stock may drop to the ultimate support level of the Murrey Math Lines tool at $200 and then resume the uptrend.

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